Linkedin
Facebook
Email
more
By 2035, peak electricity demand from data centres could reach twice the estimates published by the Australian Energy Market Operator (AEMO).
This is according to new modelling released by Transgrid – the company which owns and manages the high-voltage electricity transmission network across NSW and the ACT.
The forecast puts the data centres’ peak demand at 3.5 gigawatts (GW), which is equal to 20% of the absolute maximum power that all of NSW would draw at its highest point of demand in summer.
While there is not total confidence in the projections due to possible data centre building delays and the years required to make them fully operational, RSM’s head of national financial modelling services says the new forecasts make for sobering reading.
“Data centres require access to around-the-clock power,” says Tim Linke.
“As a nation, we currently aren’t close to figuring out how to account for that. Renewable energy may form part of the answer, but adverse weather conditions create reliability issues, so other options are needed.”
RSM’s National Technology Industry Group lead and Partner in Assurance and Advisory, Mathavan Parameswaran, agrees and says it’s an issue that demands urgent attention.
“Even for a country like Australia which can successfully harness renewable energy, we need well-considered solutions. Earlier this year we saw the Governor of New York impose a one-year ban on data centres that consume 50 megawatts or more of power – which equates to the energy used by approximately 50,000 homes. The goal is to use that moratorium to develop an environmental impact statement and set up a regulatory framework. It acknowledges the huge industrial power demands data centres put on the electricity grid and demonstrates a commitment to keeping already high energy prices from spiralling even further.
“These challenges are very similar to those facing Australia.”
Tim notes that one solution would be for data centres to have their own energy infrastructure. The Australian Government may agree, with a recent consultation paper released by the Department of the Prime Minister and Cabinet detailing standards that would require large data centres to “BYO power”.
“Residential power will be impacted by data centres, which will compete with other energy-intensive industries like manufacturing – putting enormous pressure on supply and thus driving up prices for households,” says Tim.
“Ultimately, data centres will need to have their own energy infrastructure, powered by sources that can be switched on and off at short notice to store suitable energy that helps to get them through the night.”
In the government’s proposal, the large data centres would need to fully offset their energy demand with appropriate firming through gas, batteries or hydro, and operate in ways that minimise costs for businesses and consumers.
The way forward will not be easy to navigate, especially as community backlash over planned data centre builds increases – fuelled by reports from other countries about noise pollution, rising energy costs and heavy water consumption.
“With growing community concerns over data centres, we need to see further action from government and industry,” says Mathavan.
“They must ensure data centres can be integrated in a way that does not disadvantage Australian households and businesses.”
FOR MORE INFORMATION
Should you have any questions, please feel free to reach out to Mathavan Parameswaran, Tim Linke or our Technology Consulting Team.
